Income protection

lunalg

My husband had a serious accident 2 months ago and has sustained injuries that sadly mean he will very likely not be able to work again. He was the main earner. I am now going to be the family’s main source of income. Any savings we have will need to supplement my husband’s lost income to help me pay the mortgage until it is up for renewal. 

I have limited sick pay in my job which is now even more limited due to taking 2 months off following his accident. 

I am thinking I need to start looking at income protection insurance in case I fall sick or made redundant. Can anyone provide me any advice on this? Or the best way to obtain advice on this?

DullGreyGuy

First of all realise that the term covers two different products... ASU/PPI which is the budget annual product, it only ever pays our for 1-2 years, underwriting is done at point of claim so don't have full surety of what's covered and not re pre-existing conditions, and the insurer can simply not offer to renew the policy (many were cancelled or increased prices 4 fold during Covid).

PHI is the full fat product and it's a form of long term insurance so the insurer cannot cancel it short of fraud or non-payment, premiums generally are fixed or index linked so no vast increases like ASU. Traditionally it'd pay out to your planned retirement age (set when buying) but there are cheaper versions now that pay out for 2-5 years up to your retirement age. 

Speak to an advisory protection insurance broker who can talk you through the options and advise who's most likely to give favourable terms based on your health/lifestyle etc. Alternatively you can speak to an IFA but when I did I got a bad one. 

gwynlas

Have you checked wheter critical illness/mortgage protection applies to your current mortgage or did you turn ths down? if he is able to obtain any compensation for the accident make sure that mortgage redemption is included.

lunalg

gwynlas said:

Have you checked wheter critical illness/mortgage protection applies to your current mortgage or did you turn ths down? if he is able to obtain any compensation for the accident make sure that mortgage redemption is included.

Hi what is mortgage redemption?